Work on the demolition of a part of the Hood and the construction of a new wing has begun (Dartmouth Now).
The elaborate plan to move the Joel Shapiro sculpture (pdf) has been carried out, and the sculpture stands in the Maffei Arts Plaza by the VAC (Dartmouth Flickr). There is an informational exhibit about the project in the old museum shop (Expansion Updates). The project page has an updated view showing the building's name on the north facade. The Hood Museum is opening a temporary gallery in the former Amidon Jewelers location downtown (Dartmouth Now).
It is not something the architects usually do, but one wonders whether the gate could have been preserved within the new museum as a ruin or a fragment.
The Times quotes President Hanlon as saying "We are certain that Tod Williams and Billie Tsien have come up with a design that respects and preserves the core building and allows us to both repair the problems that exist and expand the museum for future generations of Dartmouth students."
One of those problems, of course, is the obscurity of the entrance. The big gateway advertises the museum well enough, but once you go through it, you are on your own.
Curbed.com has an article with some alternative site plans proposed by Kevin Keim of the Charles Moore Foundation. Although the southern expansion would infringe on the dignity of the VAC, it really is implied by the way Moore had the museum trail off in that direction. See also the Metropolis article.
The word is that this facade is to be left undisturbed. In this context, that means "relatively undisturbed." There will be some slicing and dicing at the righthand corner of that arched opening, as shown in this image.
[Update 08.17.2016: Coding error corrected, wording of first paragraph clarified.]